Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter 5: Accounting Ratios MCQ Questions

11 Questions 22 Minutes

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Your Class 12 Accountancy - Company Accounts and Analysis of Financial Statements Study Path

Question 1

Which of the following transactions will increase debt equity ratio which is 1 : 2?

A Conversion of debentures into shares

B Redemption of debentures

C Redemption of preference shares

D Issue of shares for cash

Question 2

Which of the following ratios provide solvency position of a business in the long run?

A Turnover ratios

B Profitability ratios

C Solvency ratios

D Liquidity Ratios

Question 3

Interest coverage is equal to

A Interest on debt / Interest before interest and tax

B Interest after interest and debt / interest on debt

C Interest before interest and tax / interest on debt

D Interest after interest but before tax / interest on debt

Question 4

Which of the following will increase the current ratio where it is 2 : 1 ?

A Purchase of goods for cash

B Purchase of goods on credit

C Conversions of receivables into cash

D Payment to creditors

Question 5

Which of the following is not considered in the ratio analysis as per guidance notes?

A Non-current Assets

B Other Non-current Assets

C Share capital

D Fixed Assets

Question 6

Acid Test ratio comes under:

A Activity ratio

B Profitability ratio

C Solvency ratio

D Liquidity ratio

Question 7

Long term solvency ratio is judged by which of the following ratio?

A Operating ratio

B Liquidity ratios

C Total assets turnover ratio

D Debt equity ratio

Question 8

Cost of revenue from operations is the difference between

A Revenue from operations + Net Profit

B Revenue from operations – Net profit

C Revenue from operations – Gross Profit

D Revenue from operations + Gross Profit

Question 9

Current assets are those assets which are convertible into cash within:

A none of these

B 12 months

C 6 months

D One month

Question 10

In debt equity ratio, debt refers to

A Long term borrowings and long term debts

B Shareholdersâ€™funds

C Total debts

D Short term debts

Question 11

The two basic measures of operational efficiency of a company are

A Gross Profit Margin and Net Profit Margin

B Liquid Ratio and Current Ratio

C Liquid Ratio and Operating Ratio

D Inventory Turnover Ratio and Working Capital Turnover Ratio

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Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter 5: Accounting Ratios MCQ Questions

Your Class 12 Accountancy - Company Accounts and Analysis of Financial Statements Study Path

Which of the following transactions will increase debt equity ratio which is 1 : 2?

Which of the following ratios provide solvency position of a business in the long run?

Interest coverage is equal to

Which of the following will increase the current ratio where it is 2 : 1 ?

Which of the following is not considered in the ratio analysis as per guidance notes?

Acid Test ratio comes under:

Long term solvency ratio is judged by which of the following ratio?

Cost of revenue from operations is the difference between

Current assets are those assets which are convertible into cash within:

In debt equity ratio, debt refers to

The two basic measures of operational efficiency of a company are

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